Question 18 Which of the following securities tends to have low rate of return: Callable bond Convertible bond Taxable bond illiquid security A Moving to another question will save this response. Question 16 Which of the following statements about bonds is NOT true? The greater the default risk, the greater the yield. Bonds selling at premium are especially high quality. The less marketable a bond, the higher the yield. Municipal bonds have lower yields than similar corporate bonds. A Moving to another question will save this response. A Moving to another question will save this response. Question 12 Insolvency risk at a financial intermediary (Fl) is the risk that promised cash flows from loans and securities held by Fls may not be paid in full. incurred by an Fl when the maturities of its assets and liabilities do not match. that a sudden surge in liability withdrawals may require an Fl to liquidate assets quickly at fire sale prices. risk that an Fl may not have enough capital to offset a sudden decline in the value of its assets. > A Moving to another question will save this response. Question 4 Duration is shorter for: bonds with low yield to maturity bonds with large coupon rate bonds with long time to maturity. All of the choices are correct A Moving to another question will save this response